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EXHIBIT 99.1
 
 INVESTOR RELATIONS UPDATE
July 7, 2006
 General Comments
 
    
    Profit Sharing / CASM Profit sharing equals 10% of pre-tax earnings excluding
transition expenses and special items up to a 10% pre-tax margin and 15% above the 10%
margin. Profit sharing is included in the CASM guidance given below.
    
    Cargo / Other Revenue Cargo / Other Revenue includes: cargo revenue, ticket change
fees, excess/overweight baggage fees, contract services, simulator rental, airport clubs,
Materials Service Company (MSC), and inflight service revenues.
    
    Fuel US Airways uses costless collars on Heating Oil Futures as a fuel-hedging vehicle.
For Q206, the Company has 41% of its fuel hedged, and expects to pay between $2.15 and
$2.20 per gallon of jet fuel (including taxes and hedges). The collar range of the hedges
in place is between $1.71 and $1.90 per gallon of heating oil, or an equivalent price of
$67.37 per barrel of crude oil. Forecasted volume, fuel prices, hedge percentages, and
equivalent price per barrel of crude oil are provided in the table below.
    
    Taxes/ NOLs After the merger, US Airways and America West had a total of approximately
$1.4 billion of net operating loss carryforwards (NOL) to shelter future taxable income. Of
this amount approximately $1.0 billion is available to shelter federal taxable income in the
calendar year 2006. Due to accumulated losses through the years ended December 31, 2005,
the Companys deferred tax asset, which includes the $1.4 billion of NOL discussed above,
has been subject to a valuation allowance. As a result, when profitable, the Companys
utilization of those NOL does not result in the recognition of income tax expense for book
purposes.For Alternative Minimum Tax (AMT) purposes, only 90% of AMT NOL may offset AMT taxable income.
Accordingly, of the $1.0 billion of NOL available in 2006, 10% or up to $100 million would be
deemed AMT taxable income and therefore subject to tax at the AMT rate of 20%. The Company
expects to book tax expense and pay cash taxes associated with AMT in 2006.
    
    Share Count At the end of Q106, the Company had 81.7 million basic, and 93.4 million
diluted shares outstanding. As previously announced, the Company redeemed its 7.5%
convertible notes, which accounts for an increase of 3.86 million basic shares. Both basic
and diluted shares are provided in the table below.
    
    Cash At the end of the first quarter 2006, the Company had approximately $2.6 billion
in total cash. After the debt refinancing transaction in April 2006 the cash position
increased to approximately $2.9 billion. The Company anticipates ending the second quarter
with approximately $3.15 billion in total cash.
 Please refer to the footnotes and the forward looking statements page of this document for additional information




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MAINLINE UPDATE
July 7, 2006
 Mainline General Comments
 
    
    Mainline data includes both US Airways and America West
Airlines operated flights. All operating expenses are for
mainline operated flights only. Please refer to the
following page for information pertaining to Express.
 Mainline General Guidance
    
    1Q06A
    
    
    2Q06E
    
    
    3Q06E
    
    
    4Q06E
    
    
    FY06EAvailable Seat Miles (ASMs) (bil)
    
    
    18.2
    
    
    
    19.6
    
    
    
    20.2
    
    
    
    19.2
    
    
    
    77.2CASM ex fuel, special items, & transition expense (cts)
1
    
    
    7.82
    
    
    
    7.50 to 7.75
    
    
    
    7.00 to 7.25
    
    
    
    7.25 to 7.50
    
    
    
    7.25 to 7.50Cargo / Other Revenues ($ mil)
    
    
    228
    
    
    
    220 to 230
    
    
    
    225 to 235
    
    
    
    225 to 235
    
    
    
    910 to 920Fuel Price (incl hedges and taxes) ($/gal)
    
    
    1.92
    
    
    
    2.15 to 2.20
    
    
    
    2.26 to 2.31
    
    
    
    2.32 to 2.37
    
    
    
    2.17 to 2.22Fuel Gallons Consumed (mil)
    
    
    288
    
    
    
    ~305
    
    
    
    ~315
    
    
    
    ~300
    
    
    
    ~1,210Percent Hedged
    
    
    
    
    
    
    41
    %
    
    
    44
    %
    
    
    37
    %
    
    
    41
    %Heating Oil Collar Range including taxes ($/gal)
    
    
    
    
    
    
    1.78 to 1.97
    
    
    
    1.89 to 2.03
    
    
    
    1.89 to 2.09
    
    
    
    1.83 to 2.02Jet Fuel Equivalent (incl taxes, transport, and refining margin)
    
    
    
    
    
    
    1.95 to 2.15
    
    
    
    2.07 to 2.27
    
    
    
    2.04 to 2.23
    
    
    
    1.99 to 2.18Crude Oil Equivalent ($/bbl)
    
    
    
    
    
    
    67.37
    
    
    
    71.93
    
    
    
    68.43
    
    
    
    69.13Interest Expense ($ mil)
    
    
    75
    
    
    
    ~72
    
    
    
    ~73
    
    
    
    ~74
    
    
    
    ~295Interest Income ($ mil)
    
    
    26
    
    
    
    ~32
    
    
    
    ~33
    
    
    
    ~32
    
    
    
    ~122Merger Update ($ mil)Transition Expense
    
    
    46
    
    
    
    ~24
    
    
    
    ~29
    
    
    
    ~26
    
    
    
    ~125Capital Update ($ mil)
    
    FY06Merger Related
    
    
    90Other
    
    
    70Total
    
    
    160Shares Outstanding (mil)
    
    Basic
    
    
    Diluted
    
    
    Interest AddbackFor Q206 through Q406Earnings above $38.0 mil
    
    
    85.9
    
    
    
    94.4
    
    
    $
    2.6Earnings up to $38.0 mil
    
    
    85.9
    
    
    
    88.1
    
    
    
    Net Loss
    
    
    85.9
    
    
    
    85.9
    
    
    
    Full Year 2006Earnings above $152 mil
    
    
    85.0
    
    
    
    94.4
    
    
    $
    10.4Earnings up to $152 mil
    
    
    85.0
    
    
    
    87.2
    
    
    
    Net Loss
    
    
    85.0
    
    
    
    85.0
    
    
    
    
  Notes
 1.
    
    CASM ex fuel, special items & transition expense is a non-GAAP financial measure. Please see the GAAP to non-GAAP reconciliation at the end of this document.
 Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



EXPRESS UPDATE
July 7, 2006
 Express General Comments
 
    
    US Airways Express is a network of nine regional airlines (2 wholly owned) operating
under a code share and service agreement with US Airways and America West Airlines. All
operating expenses (including purchase agreements) associated with US Airways Express are
included within the Express Non-Fuel Operating Expense line item.
 Express General Guidance
 1Q06A
    
    
    2Q06E
    
    
    3Q06E
    
    
    4Q06E
    
    
    FY06EAvailable Seat Miles (ASMs) (bil)
    
    
    3.7
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    15.1CASM ex fuel (cts) 1
    
    
    12.12
    
    
    
    12.00 to 12.25
    
    
    
    11.75 to 12.00
    
    
    
    11.50 to 11.75
    
    
    
    11.75 to 12.00Fuel Price (incl taxes) ($/gal)
    
    
    2.03
    
    
    
    2.26 to 2.31
    
    
    
    2.31 to 2.36
    
    
    
    2.38 to 2.43
    
    
    
    2.24 to 2.29Fuel Gallons Consumed (mil)
    
    
    86
    
    
    
    ~90
    
    
    
    ~95
    
    
    
    ~95
    
    
    
    ~365Express CarriersAir Midwest Airlines, Inc. 4Air Wisconsin Airlines CorporationChautauqua Airlines, Inc.Colgan Air, Inc. 4Mesa Airlines 3Piedmont Airlines, Inc. 2PSA Airlines, Inc 2Republic AirwaysTrans States Airlines, Inc. 4
 Notes:
     Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



FLEET UPDATE
July 7, 2006
 Fleet General Comments
 
    
    As previously announced, the airline has a firm order for 25 Embraer 190 aircraft.
The delivery schedule will begin with 3 in 4Q06, 8 in 2007, and 14 in 2008. The airline
does not have any additional aircraft deliveries scheduled until 2009.
 Mainline Fleet Update (End of Period)
 1Q06A
    
    
    2Q06E
    
    
    3Q06E
    
    
    4Q06E
    
    
    FY06EMainlineERJ-190
    
    
    0
    
    
    
    0
    
    
    
    0
    
    
    
    3
    
    
    
    3737-300
    
    
    63
    
    
    
    58
    
    
    
    56
    
    
    
    56
    
    
    
    56737-400
    
    
    40
    
    
    
    40
    
    
    
    40
    
    
    
    40
    
    
    
    40A319
    
    
    93
    
    
    
    93
    
    
    
    93
    
    
    
    93
    
    
    
    93A320
    
    
    77
    
    
    
    75
    
    
    
    75
    
    
    
    75
    
    
    
    75A321
    
    
    28
    
    
    
    28
    
    
    
    28
    
    
    
    28
    
    
    
    28A330
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    9
    
    
    
    9B757
    
    
    47
    
    
    
    46
    
    
    
    46
    
    
    
    46
    
    
    
    46B767
    
    
    10
    
    
    
    10
    
    
    
    10
    
    
    
    10
    
    
    
    10Total
    
    
    367
    
    
    
    359
    
    
    
    357
    
    
    
    360
    
    
    
    360
 Express Fleet Update (End of Period)
 1Q06A
    
    
    2Q06E
    
    
    3Q06E
    
    
    4Q06E
    
    
    FY06EExpressDH8 (100/200/300)
    
    
    65
    
    
    
    63
    
    
    
    63
    
    
    
    60
    
    
    
    60CRJ-200
    
    
    123
    
    
    
    123
    
    
    
    123
    
    
    
    123
    
    
    
    123CRJ-700
    
    
    14
    
    
    
    14
    
    
    
    14
    
    
    
    14
    
    
    
    14CRJ-900
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38
    
    
    
    38EMB-145
    
    
    38
    
    
    
    30
    
    
    
    30
    
    
    
    30
    
    
    
    30ERJ-170
    
    
    28
    
    
    
    28
    
    
    
    28
    
    
    
    28
    
    
    
    28Total
    
    
    306
    
    
    
    296
    
    
    
    296
    
    
    
    293
    
    
    
    293
 Please refer to the footnotes and the forward looking statements page of this document for additional information




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##### 



GAAP to Non-GAAP RECONCILIATION
July 7, 2006
 Reconciliation of GAAP to Non-GAAP Financial Information
   GAAP to Non-GAAP Reconciliation ($mil except CASM data)Q206 Range
    
    
    Q306 Range
    
    
    Q406 Range
    
    
    FY06 RangeQ106 Actual
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    High
    
    
    Low
    
    
    HighMainlineMainline Operating Expenses
    
    $
    1,907
    
    
    $
    2,152
    
    
    $
    2,216
    
    
    $
    2,153
    
    
    $
    2,219
    
    
    $
    2,116
    
    
    $
    2,179
    
    
    $
    8,258
    
    
    $
    8,511Less Mainline Fuel
    
    
    527
    
    
    
    656
    
    
    
    671
    
    
    
    712
    
    
    
    728
    
    
    
    696
    
    
    
    711
    
    
    
    2,626
    
    
    
    2,686Less Special Charges
    
    
    (90
    )
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    
    (90
    )
    
    
    (90
    )Less Transition Expenses
    
    
    46
    
    
    
    24
    
    
    
    24
    
    
    
    29
    
    
    
    29
    
    
    
    26
    
    
    
    26
    
    
    
    125
    
    
    
    125Mainline Operating Expense excluding fuel, charges, and
transition expense
    
    
    1,425
    
    
    
    1,473
    
    
    
    1,522
    
    
    
    1,411
    
    
    
    1,462
    
    
    
    1,394
    
    
    
    1,442
    
    
    
    5,597
    
    
    
    5,790Mainline CASM (GAAP) (cts)
    
    
    10.46
    
    
    
    10.96
    
    
    
    11.29
    
    
    
    10.68
    
    
    
    11.00
    
    
    
    11.01
    
    
    
    11.34
    
    
    
    10.70
    
    
    
    11.02Mainline CASM excluding fuel, special items, and transition
expenses (Non-GAAP) (cts)
    
    
    7.82
    
    
    
    7.50
    
    
    
    7.75
    
    
    
    7.00
    
    
    
    7.25
    
    
    
    7.25
    
    
    
    7.50
    
    
    
    7.25
    
    
    
    7.50Mainline ASMs (bil)
    
    
    18.2
    
    
    
    19.6
    
    
    
    19.6
    
    
    
    20.2
    
    
    
    20.2
    
    
    
    19.2
    
    
    
    19.2
    
    
    
    77.2
    
    
    
    77.2ExpressExpress Operating Expenses
    
    $
    616
    
    
    $
    656
    
    
    $
    670
    
    
    $
    671
    
    
    $
    685
    
    
    $
    666
    
    
    $
    680
    
    
    $
    2,592
    
    
    $
    2,648Less Express Fuel Expense
    
    
    172
    
    
    
    203
    
    
    
    208
    
    
    
    219
    
    
    
    224
    
    
    
    226
    
    
    
    231
    
    
    
    818
    
    
    
    836Express Operating Expenses excluding Fuel
    
    
    443.7
    
    
    
    452.9
    
    
    
    462.4
    
    
    
    451.5
    
    
    
    461.1
    
    
    
    440.0
    
    
    
    449.6
    
    
    
    1,774.5
    
    
    
    1,812.3Express CASM (GAAP) (cts)
    
    
    16.82
    
    
    
    17.39
    
    
    
    17.76
    
    
    
    17.46
    
    
    
    17.84
    
    
    
    17.41
    
    
    
    17.78
    
    
    
    17.16
    
    
    
    17.53Express CASM Excluding Fuel (Non-GAAP) (cts)
    
    
    12.12
    
    
    
    12.00
    
    
    
    12.25
    
    
    
    11.75
    
    
    
    12.00
    
    
    
    11.50
    
    
    
    11.75
    
    
    
    11.75
    
    
    
    12.00Express ASMs (bil)
    
    
    3.7
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    3.8
    
    
    
    15.1
    
    
    
    15.1
 Please refer to the footnotes and the forward looking statements page of this document for additional information




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FORWARD-LOOKING STATEMENTS
July 7, 2006
 FORWARD-LOOKING STATEMENTS
 www.usairways.com www.americawest.com
 Please refer to the footnotes and the forward looking statements page of this document for additional information